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Provided your WiiFit is the same region as your Wii then all you'll have is an update to 3.2 or 3.4 or something. Your hard mod should prevent any dodgy updates for you anyway so you shouild be good to update without any concerns.

The other option would be to softmod and install any necessary IOS manually.

You are fine updating with a hard mod, everything will work the same plus you'll get all the new update features such as Balance board compatibility, useful SD channel and SDHC support. By updating to 4.0 you will lose the ability to use the old Zelda hack to install Homebrew channel but there are now other alternatives that work if you ever feel the need to play around with homebrew software including the excellent USB loaders.

Couldn't get it to load on the day, kept hanging after around 10 seconds of initial os startup.

Managed to get it going by starting up without the wiifit disc in the drive, then slipping it in and away we went. We had a good couple of hour session on it no issues atall.

Come to fire it up again today and it will not kick up with the disc in, same lock up routine everytime. If I fire it up without the disc in, I can browse all the settings and menus. Insert the disc, It doesn't recognise it and just locks up. No errors, nothing.

There doesn't appear to be any significant scratches on it, and I do look after my discs, that and it;s only been out the bloomin box twice!

Wii Sports and Wii play discs both work fine which leads me to a bad disc.